The single currency dropped 0.67% to 1.1754 (-80 pips) on the day against the US dollar on Friday, August 6. The decline accelerated after the US non-farm payrolls report came in substantially stronger than expected.
The US economy created 943k jobs in July, outpacing the median consensus of 870k.In addition, the June figure was upwardly revised from 850k to 938k.The unemployment rate fell to 5.4% from 5.9% (vs. 5.7% expected).
Average hourly wages increased by 4.0% YoY vs. the 3.8% forecast and 3.7% in the previous month (revised upward).
The NFP print pushed up 10-year Treasury yields and heightened market expectations of a rate hike stateside. During the North American session, the EURUSD pair slid to 1.1754.
Today’s macro agenda (GMT +3)
By the time of writing, the euro was trading at 1.1758 against an intraday low of 1.1743. Major currencies are showing mixed dynamics against the US dollar.
Notably, the NFP report tends to exert a short-term impact on the market. The price action reached the 135-degree angle of the Gann fan. Given that the 112-135-degree band implies a reversal, today we expect to see a correction to 1.1785 (trendline from the 1.1900 top). Euro crosses are all showing green on the screen. If the bulls can muster consolidation north of 1.1785, the pair will continue to recover to 1.1800.